MUNICH Re posted a consolidated profit for the first half-year of EUR 1,290 million entitling expectations for an annual result reaching the Group's 2017 profit guidance of EUR 2.0-2.4 billion.

Summary of figures for the second quarter:

- consolidated profit of EUR 733 million, supported by the high investment result and a below-average random incidence of major losses

- operating result of EUR 1,156 million, below the figure for the same quarter last year (EUR 1,463 million)

- Equity fell to EUR 30.1 billion as at 30 June 2017, due to dividend payments, share buy-backs and currency translation effects.

- Gross premiums written of EUR 11.8 billion, approximately at the same level as in the previous year (EUR 11.93 billion).

The annualized return on risk-adjusted capital (RORAC) in the first six months amounted to 9.7%, and the return on overall equity (RoE) totaled 8.2%. Since the Annual General Meeting at the end of April, shares with a volume of around EUR 220 million have been repurchased by the end of July as part of the share buy-back programme announced in March.

Reinsurance: Result of EUR 629 million in second quarter

The reinsurance field of business accounted for EUR 629 million of the Group consolidated result for Q2. For the period from January to June, reinsurance business contributed EUR 1,095 million to the consolidated result. The operating result for the second quarter was EUR 896 million.

The technical result in life/health reinsurance declined to EUR 77 million in Q2 in comparison with the very good previous quarters, mostly due to lower results in the USA and Asia. The below expectations Q2 results determined MUNICH Re to lower its estimate for the full year from EUR 450 million to EUR 400 million.

The result contribution of property-casualty business declined to EUR 517 million (778 million in Q2 2016). The combined ratio for April to June totaled 93.9% (99.8%) of net earned premiums; the figure for the half-year was 95.5% (94.3%). Thus MUNICH Re is well on track to meet the target of around 97% for the full year.

Overall loss expenditure for major losses totaled EUR 253 million (542m) in Q2, and EUR 656 million (643m) for the first six months of the year. In the second quarter, natural catastrophe losses amounted to EUR 66 million and man-made major losses to EUR 187 million. These figures are equivalent to 1.6% (nat cat) and 4.5% (man-made) of net earned premium respectively. The most expensive natural catastrophe in the second quarter was a severe thunderstorm in the USA at the beginning of May, for which MUNICH Re anticipates expenditure of around EUR 25m.

Reinsurance GWP decreased by 2.1% y-o-y Q2. In life/health reinsurance, GWP increased by 6.3% in Q2 to EUR 3,436 million, in particular due to several large-volume treaties concluded in Canada, Australia and Europe since the second half of 2016. Premium volume in property-casualty reinsurance fell overall by 8.0% to EUR 4,233 million.

The property-casualty renewals as at 1 July 2017 mainly concerned treaty business in the USA, Australia, Latin America and with Global Clients; the volume renewed was around EUR 2.2 billion. Prices were down again slightly by 0.4% in the July renewals (previous year's renewals as at 1 July 2016: -0.4%). MUNICH Re was able to take advantage of select opportunities in some markets, so that premium volume increased to around EUR 2.6 billion.

Outlook 2017: no change to profit guidance of EUR 2.0-2.4 billion for the Group

MUNICH Re expects to post gross premiums written of EUR 48-50 billion for 2017, and is not changing its forecast consolidated result in the range of EUR 2.0-2.4 billion.

Leading reinsurance companies Swiss Re, Munich Re, Partner Re and Catlin XL act as key event's sponsors of the international conference "Agroinsurance and Reinsurance of Agricultural Risks in the CIS, Europe and Asia", which will take place on April 16-18, 2018 in Belgrade, Serbia.

Following the announcement of its acquisition by AXA, A.M. Best has placed under review with developing implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a+" of the property/casualty subsidiaries of XL Group Ltd (XL).

Consumer environment in the current European regulatory and economic landscape, the upcoming legislative changes that will benefit consumers and users of insurance and private pension products, as well as digitalization and the impact of technological advances in the field of financial services are just a few of the topics that will be analyzed next week at the European Consumer Protection Conference.

Natural disasters in 2017 caused overall economic losses of USD 340 billion - the second-highest figure ever, show the latest data published by Munich Re. Moreover, 83% of natural disaster losses in 2017 were in North America, although only a quarter of all catastrophes occurred there.

Among the decisions adopted by the Romanian Financial Supervisory Authority (FSA) Board at its meeting on 7 March 2018, the appointment of Cosmin ANGHELUTA for a new mandate as Deputy General Manager of Gothaer Asigurari Reasigurari was also validated.

The 7th EIOPA Annual Conference takes place today in Frankfurt am Main, Germany. A review of the current supervisory covergence issues and of the prospects of the Pan European Personal Pension Product are on the event's agenda, together with analyzing the ways in which regulation may enable innovation.

"The Russian insurance market is ending a difficult year," Igor ALEKSEEV, Chairman of the Steering Committee of November Business Meetings of Reinsurers, Deputy Head of the Reinsurance Department, INGOSSTRAKH said today in Moscow.

"IIF2017 - Insurance in the DIGITAL World" conference brought together in Vienna well-known insurance professionals from all over the world who analyzed the latest digital trends in the industry, taking into account the fast digitalization of the financial services providers' world, in particular in the insurance field, which is creating both huge opportunities and strong challenges for the players.

On 9 November has started in Opatija, Croatia, the 2017 edition of the Croatian Insurance Days Conference, the traditional meeting of the Croatian insurance top professionals with their European peers. XPRIMM Publications are supporting the event as Media Partners.

The Baden-Baden meeting, one of the key events in the reinsurance calendar, has just set the final point of this year's edition. XPRIMM Publications have reported from the meeting's premises. Let's recap!

Central and Eastern Europe insurance markets are an important source of business for Lloyds, total premium income from this region increasing by EUR 64 million since 2010, pointed out the Lloyd's representative in a seminar dedicated to CEE insurance markets: "We are seeing strong growth from Czech Rep, Poland, Slovakia and Ukraine. At the same time are some contractions from Russia, Bulgaria, Romania and Hungary due to challenging trading conditions as political implications and other sanctions".

Asian insurance market, especially the Indian market - are considered to be "the new El-Dorado" of the global re/insurance market, with rapidly expanding markets and an dynamic environment: "Indian P&C re/insurance markets are expected to grow at a pace of 15% per annum", according to Victor PEIGNET, CEO, Global P&C, SCOR SE. The French -based reinsurer setted-up its Indian branch in 2016, after the authorisation from the local market authority - IRDAI. India's re/insurance market has become more attractive for global companies following the relaxation of regulatory requirements, and lately, "big names" in the industry entered the market by opening branches: GEN Re, SCOR, Lloyd's of London, MUNICH Re, SWISS Re, Reinsurance Group of America (RGA), HANNOVER Re, XL Catlin and others.